Here's What Analysts Are Forecasting For Acushnet Holdings Corp. (NYSE:GOLF) After Its First-Quarter Results

It's been a good week for Acushnet Holdings Corp. (NYSE:GOLF) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.6% to US$63.47. Acushnet Holdings reported US$708m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.35 beat expectations, being 3.5% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Acushnet Holdings

Taking into account the latest results, the current consensus from Acushnet Holdings' eight analysts is for revenues of US$2.48b in 2024. This would reflect a credible 3.2% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.2% to US$3.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.47b and earnings per share (EPS) of US$3.23 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$70.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Acushnet Holdings at US$86.00 per share, while the most bearish prices it at US$62.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Acushnet Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Acushnet Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% per year. Even after the forecast slowdown in growth, it seems obvious that Acushnet Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Acushnet Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Acushnet Holdings going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Acushnet Holdings you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.